Multi-annual Financial Framework (MFF) evolution

Briefing 19-12-2011

The next EU MFF should start in 2014 and last for seven years (to 2020), with total proposed expenditure of just over €1 trillion. Since the MFF fixes the maximum expenditure and indicates the appropriations (commit­ment and payment) by major activity area, it is a significant political statement of where the EU's budgetary resources will be concentrated over that seven-year period. There is a tendency towards a continuation of the existing MFF structure because of the difficulties of obtaining sufficient support for change from Member States. However, some major funding differences are noted between the existing 2007-13 MFF and the current European Commission (EC) proposal. Funds allocated to ""competitiveness"" should see the biggest single increase (+€37 billion or +48%), while ""infrastructure"" would grow by 210% (€27 billion). Other areas of major chan­ges in the proposal are ""Global Europe"" (+€13 billion +23%) and a reduction of agricultural payments of €40 billion (-13%).   Over 20 years after its introduction, and with a very different EU, the MFF structure has chan­ged little. Criticisms include a lack of flexibility in being able to make budget transfers be­tween programmes and to reflect new needs, and seven years being too long a dura­tion. These limits are particularly relevant in new and changing circumstances.   Its not running concurrently for five years with the EP's and Commission's mandates is also noted.